Give the Meaning of Marginal Utility.
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Marginal Utility refers to additional benefit a consumer gets from consumption of one additional unit of good/service.
Marginal utility is addition to total utility resulting from consumption of one additional unit of commodity.
It can be measured as change in total utility obtained from consumption of an additional unit for example X, Symbolically can be represented as:
Marginal Utility where, TUx is total utility and ΔQx is change in quantity as result of consumption of an additional unit.
When ‘n’ number of units are consumed then marginal utility can be measured:
MU of nth unit = TUn – TUn-1
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